June 24, 2024

  • Daily Motion

Elon Musk’s E-car company is set to set up a $2bn factory in India to import cars

Elon Musk’s E-car company is set to set up a $2bn factory in India to import cars

In India, Tesla may also manufacture its batteries


In 2024, Tesla is likely to enter the Indian market through imports, followed by Indian-made Teslas.

An agreement with Tesla Inc. is reportedly on the verge of being finalized in India. Elon Musk’s automaker is expected to begin importing electric cars into the country beginning next year, and possibly set up a manufacturing plant within two years. Bloomberg cites sources familiar with Tesla’s Indian team as sources familiar with the Indian government’s discussions.

Vibrant Gujarat Global Summit is expected to announce this potential deal in January, insiders indicate. The established ecosystems for electric vehicles and their export potential make Gujarat, Maharashtra, and Tamil Nadu ideal locations for Tesla’s manufacturing plant.

It is expected that Tesla will invest at least $2 billion in the manufacturing plant as part of the agreement. As part of the company’s strategy, the company plans to purchase up to $15 billion of auto parts from India. Several batteries could also be manufactured in India as a cost-saving measure by Tesla.

Tesla’s expansion strategy is likely to be impacted by the potential deal, even if no final decision has been reached, and plans may undergo changes. In March 2024, Tesla CEO Elon Musk plans to visit India to make a “significant investment” in the country.

As part of Tesla’s global strategy, the company will enter the Indian market as India’s government aims to boost domestic production of electric vehicles and promote cleaner transportation. Despite India’s efforts, there has been little progress in the electric vehicle market, which accounted for only 1.3% of total passenger vehicles sold in 2017.

The company’s entry into India could be a significant boost for it, since aspirational middle-class consumers in the country are eager to buy electric vehicles. Tesla currently has manufacturing facilities in Germany, China, and the United States.

As a result of high import tariffs, Tesla has been unable to import directly into India. As a result of the deal, Tesla cars would potentially be available for as little as $20,000 in India if it goes through.

Tesla’s factory in Fremont, California, was recently visited by Minister Piyush Goyal, who stated in September that Tesla intends to almost double its purchase of auto parts from India to $1.9 billion this year. This represents a significant increase from last year, when Tesla purchased $1 billion worth of parts from India.

There have been challenges and disagreements between Tesla and India, including criticism from Musk about Indian import taxes and EV policies. However, recent conversations suggest that the two sides are willing to find common ground. International EV manufacturers could have their import taxes lowered for a period of five years if they commit to setting up local manufacturing facilities in India.

 

 

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